- Ontario condos are governed in this order: the Condo Act, then the declaration, then the by-laws, then the rules.
- If the documents conflict, the Act takes priority.
- Unpaid common expenses give the corporation an automatic lien against your unit.
Owning a condo means living under several layers of rules at once. Some come from the province, and others come from your own building. Knowing which one wins in a conflict helps you understand your rights.
This guide gives a plain overview of the Condominium Act, 1998, the declaration, by-laws and rules, and what the main owner rights and duties look like.
How the rules rank
Ontario condos are governed in this order: the Condo Act, then the declaration, then the by-laws, then the rules. If they conflict, the Act takes priority.
| Document | Where it stands, or how it changes |
|---|---|
| Condominium Act, 1998 | Ranks first, and takes priority if the documents conflict |
| Declaration | Amended with written consent from 80 to 90 per cent of owners, depending on the change |
| By-laws | Passed by the board, then voted on at an owners' meeting; most changes need majority approval |
| Rules | Made or changed by the board after notifying owners |
Declaration, by-laws and rules
Approved by-laws are registered in the Land Registry Office. Rules take effect unless owners request a meeting to challenge them before the effective date. Rules may promote safety, security and welfare, or prevent unreasonable interference with the use and enjoyment of units and common areas.
Many everyday questions, such as what counts as a standard unit, whether owners must carry insurance, or whether you can have a pet, depend on your own building's documents. Read them before you buy and keep a copy.
Money: fees, assessments and liens
Your share of common expenses is a percentage set in the declaration. Common expense fees pay for maintaining the common elements, reserve fund contributions, and services such as cleaning, building maintenance and condo management.
The reserve fund may be used only for major repair and replacement of the common elements and assets of the corporation. After the first study, the corporation must do updated reserve fund studies at least every three years, alternating between Class 2 and Class 3.
A board can also levy a special assessment without owner approval, and owners must pay their share using the same percentage. In one court decision the Condominium Authority of Ontario describes, a buyer was exempt from their share of a special assessment because the status certificate had not clearly disclosed that assessments might be levied. Whether that could apply to you depends on the facts.
When an owner defaults on common expenses, the corporation automatically has a lien against the unit. It covers the unpaid amount, interest, and all reasonable legal costs and collection expenses. The lien expires three months after the default unless the corporation registers a Certificate of Lien in the Land Registry Office.
- Before registering, the corporation gives a Notice of Lien; if arrears are not paid within 10 days, it can register a Certificate of Lien.
- From 15 days after registration, it can issue a Notice of Sale Under Lien with a redemption date 45 days after issue.
- An owner can pay everything secured by the lien at any point until the unit is sold, and the corporation must then discharge it.
A corporation can also get a lien when an owner, after due notice, fails to carry out necessary maintenance and repairs. If an owner cannot pay chargebacks added to their condo fees and no solution is reached, the corporation automatically has a lien against the unit for that debt.
A lien tied to an issue within the Condominium Authority Tribunal's jurisdiction, such as nuisance, parking, storage, pets or records, can be disputed at the Tribunal. Liens tied to issues outside it, such as repairs, must go to the Superior Court of Justice.
Insurance and repairs
The corporation must carry insurance and never let it lapse, including coverage for damage to units and common elements, liability, and directors' and officers' liability. The corporation repairs damage to the standard unit as defined in its governing documents, and owners must repair everything outside that definition.
The corporation's property insurance does not cover improvements or non-standard elements of units, and fixtures, furnishings, equipment and personal property are generally not part of a standard unit.
No statute is cited as requiring owners to carry their own insurance, but the declaration, by-laws or rules may require it. Some by-laws also make owners pay the corporation's deductible in more situations, so check yours. Tenants are not legally required to carry tenant insurance unless the tenancy agreement or the corporation's governing documents require it.
Buying new, and what to do next
If you buy a new condo from a builder, you have a 10-day cooling-off period to rescind the agreement. It starts once you have the purchase agreement, the disclosure statement and the Condo Buyers' Guide.
- Get the declaration, by-laws and rules and read them in order of rank.
- Check the status certificate for arrears, special assessments and the reserve fund.
- Confirm what your building's standard unit covers and what you must insure.
- Keep notices of any proposed rule changes and note the deadline to request a meeting.
- Speak with a lawyer before disputing a lien or a fee.
Frequently asked questions
Which wins if the by-laws and the Condo Act conflict?
The Act. Ontario condos are governed in the order of the Act, the declaration, the by-laws, then the rules, and the Act takes priority if they conflict.
Can the board make new rules without an owner vote?
The board can make or change rules after notifying owners. A rule takes effect unless owners request a meeting to challenge it before its effective date.
How are the declaration and by-laws changed?
Amending the declaration needs written consent from 80 to 90 per cent of owners, depending on the change. A by-law change is passed by the board and then voted on at an owners' meeting, where most changes need majority approval.
Do I have to carry my own condo insurance?
No statute is cited as requiring it, but your declaration, by-laws or rules may make it mandatory for your building. Even if it is not required, the corporation's insurance leaves out improvements and personal property.
Sources
- Condominium Authority of Ontario – Reserve Funds — condoauthorityontario.ca
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
- Condominium Authority of Ontario – Liens — condoauthorityontario.ca
- Condominium Authority of Ontario – Fees and Finances — condoauthorityontario.ca
- Condominium Authority of Ontario – Chargebacks — condoauthorityontario.ca
- Condominium Authority of Ontario – Insurance — condoauthorityontario.ca
- Condominium Authority of Ontario – Contact Us / FAQ — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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